There are two core updates in Dutch labour law:
1. From 1 January 2025, Dutch authorities will no longer take a light approach to misclassification enforcement.
(a). This is a shift from “enforcement in abusive cases” to a full enforcement approach.
(b). Dutch authorities do not intend to broadly enforce retroactively.
2. Dutch legislation relating to the clarification of employee status has been delayed to 2026, which includes a presumption of employment based on an hourly rate of 33 EUR alongside legislating characteristics of employment status.
Dutch authorities consider the following key factors when carrying out a work classification:
1. Work Content Management:
(a). Client’s control over the work (including oversight and work methodology)
2. Organisational Embedding:
(a). integration of tasks into employer’s core activities, organisational rules and whether the tasks resemble those of employees.
3. Employee’s Own Expense and Risk:
(a). financial risk borne by the worker.
4. Economic Factors:
(a). multiple clients and fiscal entrepreneurship
These factors are indicative in themselves, but holistically, they should output a determination of either employment or independent contractor status.
N2S THOUGHTS:
The Risk
This shift in enforcement activity means that customers should ensure that their independent contractor population have been, and continue to be, correctly classified. Proofs and due diligence processes must be clearly documented to prepare for an audit.
Fines & penalties are far greater for organisations that have maliciously or negligently assessed their contractor population.
N2S has the technology and the expertise to support you and your customers through this process.
The Opportunity
The renewed enforcement of contractor status will impact the market, and Dutch companies will be watching their supply chains with trepidation, not wanting to be caught up in any enforcement activity – fearing fines of their own, contractual recourse from their own customers or other reputational damage.
End customers want to see robust, clear, and auditable approaches to independent contractor classification and N2S can equip its customers to protect both itself, and their own customers in turn.
With a white labelled, bespoke and scalable solution, find out how N2S can support your compliance within the shifting Dutch market.
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